IFC Finances Garanti BBVA to Support Turkish MSMEs Amid the COVID-19 Pandemic
IFC, a member of the World Bank Group, is providing a $50 million senior loan to Garanti BBVA to help micro, small, and medium enterprises (MSMEs) weather the effects of the COVID-19 pandemic, which has devastated businesses around the world. The loan is one of the first projects which IFC is funding through its $8 billion fast-track COVID-19 financing facility, which is part of the wider World Bank Group response to the pandemic.
Garanti BBVA, a long-time IFC client, will use the funding to lend to Turkish MSMEs so that they can continue to operate and sustain current employment levels. Turkish firms, especially MSMEs, are finding it difficult to access working capital financing as the pandemic has led to the sharp reduction in foreign demand, disruptions of supply chains to which Turkey contributes, and sharply reduced tourism and travel earnings.